XN000022-1996-02-23 — Page 5

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However, the CPI figures for the month were also likely to have been distorted by the difference in timing of the Chinese New Year, which occurred in mid-February this year, but in end-January/early February last year.

Because the prices of those consumer items popular for the occasion were generally higher just before the festival, the increase in CPI on a year-on-year comparison tended to be dampened for the month of January, but lifted for the month of February this year.

Thus for analysis of trend, it was better to combine the figures for the fist two months, rather than viewing them in isolation.

Contributing the most to the slower rate of increase in CPI(A) in January 1996 as compared to December 1995 was the prices of foodstuffs, which were influenced directly by the timing of the Chinese New Year.

The prices of miscellaneous consumer services, transport and durable goods also showed less rapid increases. The prices of miscellaneous goods recorded a decline over a year earlier, mainly due to the cheaper prices of some newspapers.

On the other hand, more rapid increases in prices were recorded for clothing and footwear, fuel and light, and alcoholic drinks and tobacco.

Analysed by component, those components with relatively faster price increases than the overall average for January 1996 over January 1995 were housing (10.6% in CPI(A), 11% in CPI(B), 14% in Hang Seng CPI and 11.8% in Composite CPI); and clothing and footwear (10%, 11.4%, 8.7% and 10.1%).

Meanwhile, those components with relatively slower price increases than the overall average for January 1996 over January 1995 were food (excluding meals bought away from home) (1.5% in CPI(A), 2.5% in CPI(B), 3% in Hang Seng CPI and 2.1% in Composite CPI); and durable goods (3.5%, 3.3%, 4.4% and 3.7%).

The miscellaneous goods category recorded a decline for January 1996 over January 1995 (-6.8% in CPI(A), -2.8% in CPI(B), -0.2% in Hang Seng CPI and -3.6% in Composite CPI). This was mainly due to the impact of the decreases in the prices of some Chinese newspapers, books and periodicals.

Comparing January 1996 with December 1995, CPI(A) CPI(B) increased by 0.1% and 0.3% respectively. The corresponding increases for Hang Seng CPI and Composite CPI were 0.1% and 0.2% respectively.